She was hoping for a disconnect between the two, because the venous return should lag by a mere fraction of a second.

But for investors in funds with longer-term results, the returns have been generally respectable but most still lag behind their market averages.

There, the total return lagged behind both the industry and the S.&P. 500 for the same period.

More recently, the fund's returns have lagged modestly behind the S.& P. but they are still ahead of those of its peers.

As measured by several analysts, Merrill's return on average equity between 1985 and 1989 lagged substantially behind its peers.

Its three-year returns also badly lagged behind those of its peers, despite a good performance in 1993, its first full year of operation.

So while markets abroad have performed well in local terms, the returns for United States investors have lagged.

"Over the next year, we expect the total return on stocks will lag that of bonds by about seven percentage points."

Even in the best years, returns lagged those of other industries.

Its return of 1.44 percent lagged behind the 5.02 percent advance posted by the Standard & Poor's index.